Scotch College

Government funding for education

The fact of the matter is this …

Photography: Andrew Murdoch

The perennial question of public funding for independent schools has again attracted media attention. Debate continues both at the political and philosophical level and also at a more personal level.

My predecessor, Michael Robinson, and I have previously used this forum to clarify the financial position relating to Scotch. We have emphasised that the School does not retain one dollar of funds received from both the Commonwealth and State governments – every dollar is passed directly to the fee-paying parents of the School by way of a rebate on fee accounts. Nonetheless, there still seems to be a degree of media-driven misunderstanding regarding this important matter.

Recently the Sunday Age made a number of claims about independent schools in Melbourne, including Scotch, and how their particular finances are managed. I will address some of the important issues raised.

The Sunday Age stated that Scotch College’s profit was bolstered by $4.27 million in government grants in 2006.This is simply not the case. Every dollar of government funding is passed directly to our fee-paying parents as a rebate to them – not as a rebate for Scotch. This is reflected in term accounts for all students. This ensures that fee-paying parents are simply recovering the recurrent costs associated with educating their boys at the School. The School makes a minimal operating surplus each year ($2.2 million in 2006 and $0.9 million in 2007) which is ultimately invested back into its facilities and resources.

I note that not all independent schools employ this same practice. We have consistently advocated that recurrent government funding should be paid directly to private-school fee-paying parents and not to the particular schools. If this were to occur, the basis for continuing personal attacks on particular schools would by and large be removed. The focus could then be directed to the real issue, which is that all forms of education in Australia require more funds from all sources. The Australian education system needs good public and private schools to enable the nation to confront the challenges that lie ahead.

In the September 2004 edition of Great Scot former Chairman Michael Robinson disputed claims that Scotch is simply a ‘wealthy school for the wealthy’. He eloquently summed up the situation as follows:

‘Scotch is referred to frequently as a wealthy or well-endowed school, particularly in the context of the present debate regarding government funding for non-government schools.

‘Scotch is “wealthy” in the sense that it had the foresight 90 years ago to acquire the superb site at Hawthorn. It is “wealthy” in the sense that successive generations of the Scotch Family have given generously for the development of that site with the buildings and other physical improvements which we enjoy today.

‘The money was donated by the Scotch Family for the sole purpose of providing buildings such as the Memorial Hall, the James Forbes Academy, the Junior School and the Lithgow Centre. It would not have been lawful for it to be used for any other purpose.

‘With two exceptions, the whole of the money used for the acquisition and development of the Hawthorn campus has come from the generosity of the Scotch Family; not from the government, not from the local council, not from the Church.

‘The two exceptions were federal government science grants of $140,907 in 1967 and $132,000 in 1976–77 towards the cost of the science wing of the second quadrangle.’

Current fee-paying parents are funding the recurrent expenditure incurred by the school – staff salaries, maintenance of grounds and facilities and other day-to-day expenses incurred in the delivery of the broad curricular and co-curricular programs that we offer. Scholarships, bursaries and building developments are all funded by some of the fee-paying parents and a relatively small proportion of the Scotch Family – former parents, Old Boys and friends of the School.

The Development Office at Scotch College is the vehicle through which this fundraising occurs. The office houses the Old Scotch Collegians’ Association (OSCA) which exists, among other things, to provide means whereby Old Boys of the College may be kept in touch with each other and to promote sport, recreation, entertainment and education among Old Boys.

One of OSCA’s key objectives is to ‘support the welfare and advancement of the School’. In 1973 a number of Old Boys, including Bib Stillwell, Laurie Muir and Brian Randall, with the OSCA, had the vision and foresight to create the Scotch College Foundation. The Foundation’s purpose is to benefit the School by seeking the support of the wider Scotch Family and beyond. Income from fees does not provide the financial basis for development, and so the School relies on the work of the Foundation to support its aims and bring its long-term dreams to life. The Foundation funds exist solely to support the educational vision and operation of the School.

We don’t dispute that Scotch is a fortunate and in many respects a wealthy school. The School’s commitment to ensuring that our boys ‘aim high while keeping their feet on the ground’ is still very much evident today in a number of our social-service programs. Boys continue to serve a number of local charities and organisations on a weekly basis and we are proud to have supported World Vision through the establishment of a much-needed school in the township of Kapumfi in Zambia, Africa. Our commitment to the Indigenous Student Program is stronger than ever.

As I write this column, a number of our Year 10 and 11 students are experiencing life in the Tiwi Islands, where living and educational standards are deplorably low by Australian standards. For 12 years now Scotch has sent its Australian Rules football development squad to experience the very different culture and conditions there. They also develop their football and team skills along the way in this, the 150th anniversary of the first recorded and continuing Australian Rules football match between Scotch and Melbourne Grammar.

The most important aspect of the trip, however, is that the boys develop their life skills – an appreciation for their life at home and an empathy for those who perhaps aren’t as fortunate as they are. More about this trip can be read elsewhere in this edition of Great Scot.

I hope every able member of the Scotch Family considers joining the Scotch College Foundation to ensure that Scotch can continue to provide the best possible education for our boys now and into the future. Our ability to operate independently is fundamental to our ongoing success. The School has not, and does not, rely on handouts from the government. It does, however, rely on you. GS